STOCKS TO WATCH: Alphabet Inc Is Currently An Intelligent Investment

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Alphabet (GOOGL) stock is increased by 0.740% reaching a target price of $742.55 at the time of the close, on June 9th. It opened with $737.07 and reached a trading volume of 958,963 stocks traded. It however fell by 1% by noon on Friday, yet the analysts are

The reorganization of Google into Alphabet was completed on October 2, 2015. Alphabet’s portfolio encompasses several industries, including technology, life sciences, investment capital, and research.

The establishment of Alphabet was prompted by a desire to make the core Google Internet services business “cleaner and more accountable” while allowing greater autonomy to group companies that operate in businesses other than Internet services.

Larry Page, the CEO of Alphabet Inc said, “Our Company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President. What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t much related. “

The CEO went on to address that the business plan was not to be a big consumer brand with related products- the whole point is that Alphabet companies should have independence and develop their own brands.

The company focused on getting more ambitious things done, focusing on the long-term view, empowering great entrepreneurs and companies to flourish, investing at the scale of the opportunities and resources they see, improving the transparency, and oversight of what they’re doing.

The CFO of Alphabet Inc, Ruth Porat said after their announced financial results for the quarter ended March 31, 2016, “Our Q1 results represent a tremendous start to the year with 17% revenue growth year on year and 23% growth on a constant currency basis. We’re thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth”

There are a number of different execution paths that the company is pursuing to optimize investments and opportunities.

In some areas, they hope to be increasing investment if teams meet milestones we set as part of our 2016 budgeting process. In other areas, they have chosen to work with industry-leading partners who can increase our momentum.

Finally, in certain areas where they have had multiple teams developing different approaches to a similar technology, they’ve been evaluating how to rationalize these approaches, enabling us to increase investments around a smaller, more focused set of opportunities.